The start of the new year is a great time to set goals and make changes. The importance of putting your money at the forefront of this revolution is only heightened by the fact that January is Financial Wellness Month. But where to start?

Personal finance 101 dictates a monthly budget, yet in a recent Bankrate survey, 40 percent of those polled say they do not have a budget. People often complain that budgets—like diets and preschooler time-outs—just don’t last as long as they ought to. But Caryn Kaiser, general manager of Chase Blueprint, a service that lets customers manage their credit cards, says that this critical financial tool does not have to be overwhelming. “Before you begin, take a deep breath and know that creating a budget and sticking to it is possible,” Kaiser says. “For many people, the thought of a financial plan is overwhelming. The fact is, it must be simple or it won’t be successful. And remember that developing a budget is important no matter how much money you make or how much money you owe.”

1. Set your goals. Do you want to get out of debt? Build an emergency savings? Start investing? “By determining exactly why it is you’re creating a budget, it will make it easier for you to stay on track,” says Howard Dvorkin, founder of Consolidated Credit Counseling Services.

2. Know your income. Sure, you know your annual salary or hourly wage, but how much money goes into your bank account each year after taxes and benefits are deducted? Add up paychecks, part-time work and any income from investments and gifts.

3. Add it all up. Figure out how much you spent over the past 12 months in total. Mint.com is a great (and free!) tool. Combing through last year’s receipts or bank and credit card statements is another way to tackle this. Then break down spending in every category: housing, utilities, health care, clothes, entertainment, etc. “Once you have the baseline, you’ll also compare that to your net income to see whether you are deficit spending or not,” says Teresa Dentino, a financial educator and the author of What Your Mother Never Taught You About Money: Step-by-Step Information on Your Financial Education.

4. Do the math. Convert these figures to monthly averages by dividing the totals by 12, Dentino says. “Most people don’t include things they don’t use every month, like hair care every six weeks, so these figures often don’t get counted,” she says.

5. Create money buckets. Dvorkin advises his clients to establish a budget for monthly mandatory, flexible and optional expenses based on your projected monthly income. Obligatory expenses are the same each month and include rent, mortgage, loan payments, insurance premiums and car payments. Flexible expenses, based on how you choose to spend your money, differ each month. They include grocery bills, gas and clothing. Meanwhile, optional expenses are, well, optional: vacations, unnecessary clothes, restaurant dining and home decor. “If you are spending more money than you earn, you need to eliminate items from the optional category,” Dvorkin says.

6. Get precise. Set number-specific financial goals by writing them down, Dvorkin suggests. Share these goals with a trusted loved one to help you stay on track.

7. Create a budget. Based on your income, expenses and goals, determine at the beginning of each month how you will spend your money for the next 30 days, says Kevin Gallegos, vice president of Phoenix, Arizona, operations and sales for Freedom Debt Relief.

8. Monitor it. Check in monthly on your spending, savings and earnings and adjust accordingly. Maybe you get a raise, or the price of gas or heating goes up. Review these changes alongside your monthly and big-picture goals.

9. Save, save, save. “When creating and executing your budget, be sure to include a category for savings—no matter how small—and guard it fiercely,” Gallegos says. After all, it’s often those unexpected big bills that can blow a budget.